March 13 (Reuters) – Utilized Supplies (AMAT.O), which makes tools to supply chips, stated on Monday that its board has accredited a brand new $10 billion share repurchase scheme, and in addition raised its quarterly dividend.
Shares of the Santa Clara, California-based firm rose greater than 1% in buying and selling earlier than the bell.
The newly accredited buyback scheme provides to its earlier authorization, which had $4.7 billion remaining on the finish of the primary quarter of fiscal 2023, the corporate stated.
Utilized Supplies stated its board additionally accredited a 23% enhance in its quarterly dividend, the biggest in 5 years, to 32 cents per share, up from 26 cents per share.
The semiconductor business has been dealing with a downturn in demand for chips utilized in private computer systems and cellular gadgets, though, in a vivid spot, demand from knowledge heart and automotive sectors has been regular.
Final month, Utilized Supplies forecast quarterly income that was largely above analysts’ expectations because it benefited from resilient demand for its instruments used to make chips for the automotive and synthetic intelligence industries.
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Utilized Supplies stated its companies enterprise has turn into bigger and extra subscription-based serving to its income and profitability turn into extra predictable.
Reporting by Akash Sriram in Bengaluru; Enhancing by Savio D’Souza
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